Unlocking Social Impact Through Ethical Purchasing

In Australia, government bodies and councils, along with numerous private sector organisations, are beginning to embrace the concept of ‘social procurement’ to drive positive change in local communities.

Social procurement is the intentional purchasing of goods and services from businesses that prioritise social and ecological equity, diversity and responsibility. This innovative approach goes beyond traditional procurement processes by prioritising ethical considerations alongside economic factors. Whether purchasing catering for a small event, or recruiting for major infrastructure works, Australian organisations can align their purchasing decisions with broader social goals, such as Indigenous economic empowerment, sustainable practices, and job creation for disadvantaged groups. By supporting socially responsible suppliers, organisations contribute to building inclusive economies and reducing social inequalities.

In Australia, this is made easy, thanks to directories like Social Traders which link government and business purchasers with accredited social enterprises across all kinds of products and services. Bodies like SECNA (the Social Enterprise Council of NSW and ACT) also run events, such as the upcoming Social Enterprise Festival, which help to secure investment and policy change, and to connect and engage the social enterprise sector.

What are the benefits of social procurement?

Social procurement offers several benefits that extend beyond traditional procurement practices. Firstly, it fosters economic growth by stimulating local businesses and creating job opportunities for marginalized individuals. Secondly, it encourages environmentally sustainable practices, driving the adoption of eco-friendly products and services. Thirdly, social procurement enhances corporate reputation, demonstrating a commitment to social responsibility and ethical business practices. Additionally, it promotes diversity and inclusion, enabling businesses to engage with suppliers from diverse backgrounds and communities.

How to maximise the impact of social procurement

The following steps can help you to ensure an effective transition towards social procurement within your organisation:

1. Establish clear social procurement policies, and integrate them into your existing procurement processes. These example policies from Buy NSW and Wollongong City Council might help you on your way.

2. Conduct thorough supplier evaluations to ensure alignment with social values. At Green Island Creative, we use a preferred supplier list that notes the location, environmental commitments, accreditations, diversity metrics, and relevance of suppliers to marginalised sectors (Indigenous-owned, women-owned, disability employment, etc.).

3. Collaborate with relevant stakeholders such as Social Traders, Supply Nation, SECNA, B Corp, NGOs and community organisations to get access to their business directories, or facilitate introductions to enhance the effectiveness of social procurement initiatives.

4. Track and measure social impact of your procurement activities to ensure ongoing improvement.

Green Island Creative is a Social Traders and B Corp certified business, which means that we meet the highest standards of transparency and responsibility in our commitments to ethical business.

The images above represent just a few of the ways we centre care for communities, culture, coastlines, and Country in our work. When we talk about ‘local community’, we mean the myriad, multi-species communities of plants, animals, and humans living on Yuin Country. We give 10% of our hours to grassroots and community initiatives, and offer discounted rates to non-profits, start-up, and Indigenous-owned businesses.

There are thousands of small businesses in Australia that are working towards social and environmental change, and who deserve your support! We hope that you’ll start to re-think the way you purchase business services, to consider the local businesses near you for your next event, printing job, legal case, or building contract.